China Southern Leads Airlines Lower as Airports Raise Fee

Feb. 5 (Bloomberg) -- China Southern Airlines Co., the
nation’s biggest carrier by passengers, fell the most in almost
eight months in Hong Kong trading, leading declines among
Chinese airlines, after local airports announced fee increases.

China Southern, based in Guangzhou, dropped 4.3 percent to
HK$4.48 at the close in Hong Kong, the biggest fall since June
8. The city’s benchmark Hang Seng Index fell 2.3 percent.

Beijing Capital International Airport Co., the world’s
second busiest airport by passengers, said regulators will allow
it to charge domestic carriers’ international flights the same
fees as foreign carriers effective April 1. The increased
charge, which also applies to domestic flights that connect to
international flights, will help boost revenue, the airport said
in a statement yesterday.

Chinese carriers pay about 40 percent less than their
foreign rivals for international flights to China’s airports,
Barclays Plc analysts led by Patrick Xu wrote in a note to
clients yesterday. Airports in Shanghai, Guangzhou and the
Hainan province announced fee increases after receiving the
notice.